l. Question 1

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    Question 1. Explain the different leadership styles (not theories) defined in the academic

    literature and discuss what style of leadership is the most appropriate in different

    environmental situations and with different categorisations of employees.

    Answer 1. The leader is responsible for setting up the direction of the corporation. The

    initiatives taken for the purpose of creating a favorable environment for the organization cannot

    succeed until or unless the leadership is ready for it. The leadership should have the necessary

    courage as well as foresight to do the right thing as it will lead to success in the long term. A

    leader can play the real role in this case as he/she can convince the followers to follow the right

    path for the organization. Leadership can be defined as the process of influencing the supporters/

    followers and directing them towards the achievement if a common goal. The researchers in this

    area have identified several different styles of leadership:

    Autocratic Leadership Style: This is the classical leadership style where the leader retains

    the decision making authorities and is extremely intolerant towards suggestions from

    others. The leader is the sole central authority and expects the followers to follow the

    instructions given out to them. Autocratic style works in those cases where an immediate

    response is required and the followers are not well equipped to deal with the situations

    and there is a need for greater coordination with several other departments.

    Democratic Leadership Style: Also known as the participative style, here the

    followers/staff members are encouraged to participate in the decision making process and

    they are kept informed about the things that are going on in the organization. This style is

    appreciated by the staff as the leaders trust them. It boosts up their morale and promotes

    team spirit. But this style can be used only in the case when the staff is skilled enough to

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    participate in the decision making process and helps in overall development of

    personality of staff members. But this cannot be used in situations when time is less and

    there is no space for mistakes.

    Laissez Faire Leadership Style: This style of leadership is also known as free rein style.

    In this case the leader gives full authority to the staff members and they formulate their

    own goals, make their own decisions and try to resolve problems that crop up. This style

    can be used when the staff is highly experienced and skilled as well as trustworthy. This

    style should be used only in the case when the leader shall be available for timely

    feedbacks. It makes the employees feel more motivated and dedicated towards the overall

    goal achievement.

    Transactional Leadership Style: Leaders who use this style have belief that individuals

    are motivated by the rewards as well as the punishments that they expect to get in return

    for the job performed. These leaders carve out clear cut job structure and reward

    structure. This type of leadership style is often used in large organizations with

    bureaucratic setups. It is based on reciprocal relationships.

    Transformational Leadership Style: This style is based on the fundamental premise that

    people tend to follow the guidelines of any individual who motivates and inspires them

    and has a long term vision. These leaders develop the vision keeping in mind the needs of

    others and then they create trust among their followers who tend to follow the leader for

    actualization of this vision. These leaders are very committed and they make changes

    happen within the inner self of followers, and also within the organization.

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